Sony takes on Microsoft, prices new PS4 below Xbox One

LOS ANGELES Tue Jun 11, 2013 11:47am EDT

1 of 10. Scenes from the game 'Max: The Curse of Brotherhood' are displayed on screens during the Xbox E3 Media Briefing at USC's Galen Center in Los Angeles, California June 10, 2013.

Credit: Reuters/Mario Anzuoni

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Sony prices PS4 at $399

Tue, Jun 11 2013

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LOS ANGELES (Reuters) - Sony Corp on Monday priced its latest PlayStation 4 console $100 lower than the new Xbox One by rival Microsoft Corp as competition for gamers' pockets intensifies ahead of the year-end holidays and gift-giving season.

Sony said it would sell the latest PlayStation model for $399 late in the year shortly after Microsoft announced a $499 price tag for its first new Xbox in eight years and said it would go on sale in the United States in November.

Sony also drew cheers from the audience at the Electronic Entertainment Expo (E3) in Los Angeles when it said the PS4 would run second-hand games and did not require an always-on Internet connection.

Microsoft had earlier elicited groans from gamers when it announced restrictions on used games for the Xbox One and said players had to log onto the Internet for authentication.

"The PlayStation 4 won't impose any new restrictions on used games," said Jack Tretton, president and CEO of Sony Computer Entertainment America as the audience whistled and applauded.

Microsoft and Sony hope the consoles will attract new fans and retain users who are increasingly playing games on smartphones and other mobile devices, gradually diminishing the $66 billion video game business. Both companies are also offering more entertainment options.

The Xbox 360 is currently the best-selling gaming console in the United States, but global sales are almost on par with the PlayStation 3.

The new Xbox and PlayStation are both pricier than the $300 Wii U which Nintendo Co Ltd launched late last year but which has sold poorly, partly due to a dearth of new gaming titles. Nintendo is expected to announce new games for the device at the E3 on Tuesday.

Sony did not give details about original programming content for the PS4 but said new game titles would include Assassin's Creed IV Black Flag by Ubisoft and Kingdom Hearts III by Disney Interactive Studios and Square Enix Holdings Co Ltd.

"It's a very compelling price... given the entertainment PS4 will provide to gamers," Sony Computer Entertainment President and CEO Andrew House told the E3 event.

The Xbox One is costlier than the current Xbox 360 and includes a Kinect motion sensor for hands-free game playing. Microsoft also announced several exclusive game titles, including a rendition of 'Minecraft' and a new installment in the popular 'Halo' franchise, which will be released in 2014.

The device will go on sale in 21 countries, including Britain, before the year-end holidays, the company said. Yusuf Mehdi, an executive at Microsoft's interactive entertainment unit, did not set any sales targets for the new Xbox.

(Writing by Bill Rigby; Editing by Gary Hill and Miral Fahmy)

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Comments (4)
raynern wrote:
Ok, so I have both the 360 and ps3 at the moment and was planning to get both next gen. New plan is to keep the 360 and ps3 plus get the ps4. I just can’t find anything I like about the XBox One other than a few of the exclusive titles.

Jun 11, 2013 2:56am EDT  --  Report as abuse
hysonmb wrote:
Sony did save the best for last. Microsoft is going to have to figure out how they’ll deal with the two things Sony killed them on- used games and price.
Sony didn’t mention that the PS4 is not shipping with the camera (they didn’t mention the camera at all) so that could easily account for the price difference. On the other hand, they give that option and MS does not as the One requires Kinect to be attached.
The used games thing is a mess for MS. That alone turned off a lot of people. I personally like the fact that games can be shared with family / friends so if I or someone else in my family buys something we can all play it without having to be in the same place, but, they didn’t get too deep into that. If a person has the physical media though, regardless of how they got it, they should be able to stick it in the box and play.

Jun 11, 2013 6:52am EDT  --  Report as abuse
I really love my xbox. have over $10,000 invested. Had it since day one. Do not plan on buying a new Xbox one. I actually just cancelled my preorder.

Microsoft this is not a good move. I feel that “you” feel you have the gamer market now, and you will have it later – this is not the case. Honestly Sony took advantage of you in the E3 breifing. There is still time on your side to make this work, but you will have to suck it up:

1) region free – is still possible. Ignoring Japan, and parts of Asia will not win gamers
2) used games, just do what has worked before. Now you are making companies happy, not consumers

3) online to check your license hourly. this is ridiculous, change this
4) for those who do not have internet, serving our country, slower internet, etc – they cannot play games, and is a bit elitest – this can be reversed

The price is what it is, just because it is $100 more than PS4 does not matter, as you are including the Kinect… but you are essentially forcing the Kinect on people (I have kinect now, and love it). If I had to guess your user base will drop by double digits. My opinion is a lower cost xbox 360 to compete with apple TV do all the TV stuff with that, and leave the new machine for games.

Much of this is perception. I personally perceive that this will be an overly complicated process – Microsoft, you can still change this – you were the “Apple” of the gaming industry. If not, it will be a major hit on your bottom line.

Jun 11, 2013 9:08am EDT  --  Report as abuse
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